A sum of ₹4,620 is to be paid back in 2 equal annual instalments. How much is each instalment (in ₹) if the interest is compounded annually at 10% per annum?
Answer & explanation
Correct answer: option 3
Initial Sum = Rs. 4620
10% = \(\frac{1 }{10}\)
10 : 11 -----(1)
10² : 11²
Multiply equation (1) by 11.
10×11 : 11²
Total principal = 100 + 110 = 210
ATQ,
210R = 4620
1R = \(\frac{4620}{210}\) = 22
11²× R = 11 × 11 × 22
= Rs. 2662